Dell (DELL) Can't Say 'No' to Quest Software (QSFT); Said to Submit Higher Bid
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.2%
Revenue Growth %: +2.1%
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"I wish I knew how to quit you." - Dell, to Quest Software.
According to reports out Monday, chatter around the water cooler is Dell, Inc. (Nasdaq: DELL) is the "mystery bidder" in the juicy $27.50 per share superior proposal for Quest Software (Nasdaq: QSFT). The confirmation follows headlines several weeks ago Dell and Quest called off talks for a potential deal.
At the time, sources said "lower level" management continued to be in contact.
Total value on Monday's proposed bid id $2.32 billion, according to Reuters.
The bid is actually very similar to one Dell submitted not that far back, though the proposal is not subject to financing requirements. A breakup fee of 3.5 percent was included in the latest bid.
Also in the running for Quest is Insight Venture Partners and Vector Capital, which proposed $25.75 per share. Quest agreed to a merger with the group last week, though that has since been canceled.
Shares of Dell are off 2.2 percent on this tough trading Monday, while Quest shares are up 1.4 percent to $27.60. The price action suggests investors might be expecting a bidding war to take place.
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According to reports out Monday, chatter around the water cooler is Dell, Inc. (Nasdaq: DELL) is the "mystery bidder" in the juicy $27.50 per share superior proposal for Quest Software (Nasdaq: QSFT). The confirmation follows headlines several weeks ago Dell and Quest called off talks for a potential deal.
At the time, sources said "lower level" management continued to be in contact.
Total value on Monday's proposed bid id $2.32 billion, according to Reuters.
The bid is actually very similar to one Dell submitted not that far back, though the proposal is not subject to financing requirements. A breakup fee of 3.5 percent was included in the latest bid.
Also in the running for Quest is Insight Venture Partners and Vector Capital, which proposed $25.75 per share. Quest agreed to a merger with the group last week, though that has since been canceled.
Shares of Dell are off 2.2 percent on this tough trading Monday, while Quest shares are up 1.4 percent to $27.60. The price action suggests investors might be expecting a bidding war to take place.
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